China's biggest semiconductor IPO has become the country's most valuable listed company after its stock soared on its first day of trading, underscoring investor confidence in China's AI ambitions.
Shares of CXMT, China's largest DRAM memory chip maker, surged as much as 535% during their Shanghai debut before closing 466% higher, giving the company a market value of roughly 3.3 trillion yuan ($487 billion).
The blockbuster listing follows China's largest-ever semiconductor IPO, which raised 57.9 billion yuan ($8.6 billion) and could reach 66.6 billion yuan if additional shares are sold.
CXMT overtook Industrial and Commercial Bank of China to become the most valuable company listed on the mainland market, as investors continue betting that domestic chipmakers will benefit from Beijing's push to reduce reliance on foreign technology amid US export restrictions.
Now the world's fourth-largest DRAM producer, behind Samsung Electronics, SK Hynix, and Micron, CXMT is expected by Nomura to increase its share of global DRAM production from around 10% today to 18% by the end of 2028.
However, analysts warn the company still faces major challenges, including US export controls that limit access to advanced chipmaking equipment, as well as risks from weaker demand, growing competition, supply-chain constraints, and rising geopolitical tensions.